Finance Division takes unprecedented step to development projects



As per Prime Minister’s vision to speed up process of development projects and schemes, the Finance Division has shortened budget release process for Public Sector Development Programme (PSDP). The step is aimed at easing funds flow and to remove bottlenecks, to boost economic development.
The steps include increased availability of funds, friendly processes and incentives for early and proper utilization of funds. Following are the new measures:-
(i). Half of the budgetary allocations for approved PSDP projects have been made instantly available to Ministry of Planning & Development by revising Finance Division’s release strategy. Now 50% funds are available for the first two quarters, without any complication. The quarter wise release will be 20:30:30:20.
(ii). There shall be incentive of advance releases to the executing agencies which will utilize funds appropriately within required time period.
(iii). There shall be no ways and means clearance of Finance Division for the approved PSDP projects for the first 03 (three) quarters of the financial year.
(iv). The practice of endorsement by officers of Finance Division on the PSDP funds releases sanctioned by the PAOs is also being withdrawn forthwith.
(v). The whole process of authorization, releases and sanctioning of PSDP allocated funds shall be dealt between Ministry of Planning, Development & Reforms and Ministries / Divisions and PAOs concerned.
An updated Revised Release strategy for approved PSDP projects, to formalize the above steps has been issued by Finance Division.
The Ministry of Planning, Development & Reforms and other line Ministries / Division have been amply enabled to speed up utilization of PSDP funds in accordance with the revised release strategy and Public Finance Management Act, 2019. These steps will ensure adequate money supply, less tier control and ease of operation in the development programme.—INP

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